WALL STREET WORDS YOU SHOULD KNOW
ASK - The price in a market at which an asset can be bought.
BEAR - Any investor or firm that believes that the financial markets are going to fall in value.
BID - The price in a market for which an asset can be sold.
BLUE CHIP - A large, global, and financially stable company.
BOND - A financial product that allows an investor to lend money to a company or government and receive interest on the principle.
BROKER - An intermediary who charges a fee to perform orders on behalf of a client.
BULL - Any investor or firm that believes that the financial markets are going to rise in value.
CHAPTER 11 - A bankruptcy filing with the SEC which is undertaken by any company which cannot pay its creditors and is therefore bankrupt.
DAY TRADING - A trading strategy which revolves around opening and closing positions within a single day.
DOW JONES INDUSTRIAL AVERAGE - A weighted market average of 30 large corporations that trade on U.S. exchanges.
EARNINGS PER SHARE - The profit of a company per outstanding share. The higher the value of EPS, the more profitable the company is.
GROWTH STOCK - A stock that is predicted to grow at a rate higher than that of the market average.
INFLATION - A term used in economics to describe the rate at which the price of goods increase.
LARGE CAP STOCK - A company with a market capitalization of over $10 billion.
MARKET RISK - The risk an investor accepts when holding any asset.
MERGER - When two or more companies combine to increase value and enhance operations.
MUTUAL FUND - Invests in assets such as Stocks and Bonds by pooling funds from many investors. Mutual funds are operated by fund managers who invest the fund's capital and attempt to produce maximum gains for the fund's investors.
OPTIONS - A financial derivative that gives the holder the right, but not the obligation to buy or sell a financial asset at a pre-determined price during a pre-determined period.
PENNY STOCK - A stock with an extremely low value, usually issued by a very small and risky company.
PORTFOLIO - Stocks, Bonds, Mutual Funds, and other investments held within your brokerage account.
SHARE - A single unit of ownership in a company.
SHORT STOCK - Selling an asset that you don’t own and profiting when it's value goes down.
SMALL CAP STOCK - A stock with a market capitalization of under $2 billion.
TECHNICAL ANALYSIS - The technique of analyzing an asset based on the statistics of its Trading pattern and history.
VOLUME - the quantity of shares traded over any given period.
YIELD - The return on an investment.